Foxtons plans to double its presence in London within five years as it
continues to take advantage of the capital’s booming property market.

The estate agency, which made its stock market debut on Friday, told investors it wants to open as many as ten new branches a year until 2018. It made the claims in a prospectus to potential investors ahead of the float.

Foxtons intends to use its strong organic cash flow to fund the expansion.

In a section on strategy, the management, led by chief executive Michael Brown, outlined his expansion plans.

“The Group has identified at least 60 additional local markets in London which share similar attractive market fundamentals as Foxtons’ existing branch territories, and which it expects to offer similar financial potential as its existing branches,” the prospectus says. “The Group intends to open between five and 10 new Foxtons branches per annum between 2014 and 2018.”

At the most that would mean a further 40 branches, on top of its existing 42, all but two of which are within the capital. Over the long term, Foxtons says it will expand beyond London, having identified a further 100 local markets in the South East which offer similar financial potential.

The prospectus details a series of risks that investors face, not least the fact that 52.6pc of group revenue comes from its property lettings business. The document admits if volumes of transactions were to fall — a possibility as the number of first time buyers begins to rise thanks to a number of Government schemes – the revenue earned would fall.